White House supported Merrill Lynch deal

WASHINGTON, Oct. 20 (UPI) -- White House officials told Bank of America they agreed with a U.S. taxpayer rescue package to support the bank's purchase of Merrill Lynch, bank documents show.

Bank of America's deal to purchase the ailing Merrill Lynch, which was completed last winter, is under scrutiny by Congress, the Securities and Exchange Commission and New York State.

One of the key concerns is how much pressure government officials placed on the bank to complete the deal, especially after the bank's Chief Executive Officer Kenneth Lewis expressed his doubts about the transaction, The Washington Post reported Tuesday.

In documented discussion points for a Dec. 22 conference call, Lewis reportedly told Bank of America board members, "that (U.S. Treasury Secretary) Geithner and, in addition, (Director of the National Economic Council) Larry Summers were both on board with the transaction."

An email written by Chief Financial Officer Joe Price, dated Dec. 29, says the bank "had the strongest assurances" that Federal Reserve Chairman Ben Bernanke would keep his job under an Obama administration. The e-mail says former Treasury Secretary Henry Paulson Jr. and Geithner, "were all aware and in agreement with the representations made to Ken Lewis in the discussions."